Global bond issuance was down year-on-year (YoY) in 3Q23, while volumes also softened sequentially. High interest rates and relatively punitive coupon costs compared with the previous low interest-rate era have made it more attractive for issuers to refrain from near-term refinancings. M&A activity has also been constrained. In addition, the relatively medium-term maturity wall for issuers, particularly in Europe, means many companies have no urgent necessity to refinance.
Global supply in the first nine months of 2023 was down only marginally from 9M22, according to Dealogic data. Issuance volumes stood at USD 5.162trn for 9M23, as opposed to USD 5.346trn in 9M22. Global 3Q23 volumes of USD 1.385trn were down sequentially compared with USD 1.957trn in 1Q23 and USD 1.818trn in 2Q23. However, this can partly be explained by the seasonal impact of a quieter August issuance holiday period, with 3Q23 volumes dipping only around 2.9% YoY.
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